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Retailers turn to 'experiences' to draw shoppers

Scheels is wrapping up its $25 million expansion and remodeling project, which includes an indoor Ferris wheel and several other entertainment features. It's a trend many retailers are following as they attempt to get shoppers to spend more time and money in their stores.

Retailers turn to 'experiences' to draw shoppers

Tom Fuzzey, of Sioux Falls, left, and Matthew Fuzzey, who is visiting from Tucson, Ariz., shoot targets at the lazer rifle shooting gallery at Scheels on Wednesday, May 7, 2014, in Sioux Falls. A lazer rifle shooting gallery is among the attractions, such as a ferris wheel and a Rollerball Mini Bowling Lane, at the Scheels store in Sioux Falls. Joe Ahlquist / Argus Leader

Harper Gillis, 4, and her mom, Larissa Gillis, ride the ferris wheel at Scheels on Wednesday, May 7, 2014, in Sioux Falls. A ferris wheel is among the attractions, such as a Rollerball Mini Bowling Lane and a lazer rifle shooting gallery, at the Scheels store in Sioux Falls. Joe Ahlquist / Argus Leader

Samuel Dresch, 10, of Sioux Falls, reacts while bowling at Scheels on Wednesday, May 7, 2014, in Sioux Falls. A Rollerball Mini Bowling Lane is among the attractions, such as a ferris wheel and a lazer rifle shooting gallery, at the Scheels store in Sioux Falls. Joe Ahlquist / Argus Leader

Harper Gillis, 4, and her mom, Larissa Gillis, ride the ferris wheel at Scheels on Wednesday, May 7, 2014, in Sioux Falls. A ferris wheel is among the attractions, such as a Rollerball Mini Bowling Lane and a lazer rifle shooting gallery, at the Scheels store in Sioux Falls. Joe Ahlquist / Argus Leader

Samuel Dresch, 10, of Sioux Falls, bowls at Scheels on Wednesday, May 7, 2014, in Sioux Falls. A Rollerball Mini Bowling Lane is among the attractions, such as a ferris wheel and a lazer rifle shooting gallery, at the Scheels store in Sioux Falls. Joe Ahlquist / Argus Leader

Less than one week after the 45-foot Ferris wheel started turning in the Sioux Falls Scheels store, it had counted almost 3,500 riders.

Store leader Chris Kray now estimates the number is closer to 10,000. On weekends, the line is 30 to 40 people long, he said.

"A lot of smiles," Kray said of the customer reaction to the new attraction. "Just amazed you can put a Ferris wheel inside a building."

The Ferris wheel is the focal point of a $25 million renovation and expansion that Scheels is scheduled to finish by May 16. Along with doubling the store size to 200,000 square feet, the project added a variety of features designed to entertain customers and prolong their time in the store. There's a shooting gallery, bowling game, sports simulators and a children's play area as well as a restaurant.

Ferris wheel rides are $1 each. There are also costs similar to an arcade for the other games.

"It's pretty simple today. You have to offer people an experience if you want to get them in your store," said Randy White, CEO of White Hutchinson Leisure & Learning Group and a consultant who specializes in the melding of retail and entertainment. "And every retailer is trying to go that way. Scheels is probably way ahead of them."

When he announced the project in 2012, CEO Steve Scheel compared it to "the Disneyland of sporting goods."

The typical Sioux Falls shopper spends 30 minutes inside Scheels on a weekend, he said. In stores that offer more interactive activities, the typical stay extends to more than 2 1/2 hours.

The sporting goods chain started adding the features about a decade ago, Kray said.

"You can go just about anywhere to buy anything we have in our store," he said. But the experience of being able to shop, eat and play is more unique.

While Scheels helped pioneer the new retail experience, it has caught on with many retailers, White said.

"Most big-box sporting goods stores are doing it," he said. "Bass Pro has bowling in some centers. They put in aquariums, and it's an experience."

Cabela's in Mitchell features a 25,000-gallon aquarium with fish native to South Dakota and does fish feedings for kids' events and customers on weekends, said Jen Johnston, marketing and event coordinator.

"It also increases the time the customer actually spends in the store," she said. "We have something for them to do. They're willing to hang out longer and maybe shop a department they didn't come in for. If they're big hunters and they see fish, they might check out fishing reels and camping gear."

As part of a remodeling project in 2012, the store added a 50-foot archery range and brought back a deli and grill.

"And we do seven hours of demonstrations and interactive events every weekend that vary depending on the season and ads running," Johnston said.

Apple and Starbucks are other retailers that offer a defining customer experience, White said.

"All the literature is about experiential retail. Malls don't work anymore," he said. "The anchors are entertainment and restaurants. Department stores are dying, and they used to be the classic anchor."

The Empire Mall general manager Dennis Gilliam said department stores are "still the kingpin of any great mall, but nothing pumps more energy into a center than an entertainment component or a great entertainment-oriented restaurant."

The District opened last year on the mall's campus, bringing entertainment through its live music and event venue, and Build-A-Bear Workshop opened as well.

Live from Scheels, Managing Editor Patrick Lalley and Business Editor Jodi Schwan talk with a Scheels manager and a local developer. Due to technical problems the last 12 minutes of the show were cut off.